News item from the People's Bank of China
The Monetary Policy Committee of the People’s Bank of China (PBC) held its fourth quarterly meeting of 2010 in Beijing days ago.
The Committee held that recovery of the global economy was likely to continue in 2011, although with a lot of unstable factors and uncertainties. The positive momentum in China’s economy has been further consolidated and the financial system has functioned in a stable manner, but the country faces tough tasks in controlling money, credit and liquidity growth as well as warding off financial risks.
It was noted at the meeting that efforts should made to implement the prudent monetary policy, make the financial measures more targeted, flexible and effective, and give more priority to stabilizing the general price level in 2011. In accordance with the principle of keeping a prudent stance, making proper adjustment and optimizing structure, a mix of monetary tools will be adopted to control liquidity and bring the monetary and credit conditions back to a normal state. More credit will be channeled to the real economy, especially to support agriculture, the countryside, farmers and medium-sized and small enterprises, so as to help promote the strategic and economic restructuring. Efforts will be made to improve a multi-layer capital market system, increase the share of direct financing, and maintain a reasonable scale of total financing. Efforts will be made to improve the RMB exchange rate mechanism and keep the RMB rate basically stable at an equilibrium and adaptive level.
Mr. Zhou Xiaochuan, Governor the PBC and Chairman of the Monetary Policy Committee, chaired the meeting. Ms. Hu Xiaolian, Mr. Yi Gang, Mr. Du Jinfu, Mr. Liu Minkang, Mr. Shang Fulin, Mr. Wu Dingfu, Mr. Jiang Jianqing, Mr. Zhou Qiren, Mr. Xia Bing, and Mr. Li Daokui attended the meeting. Mr. Li Yong provided written remarks. Mr. You Quan, Mr. Zhu Zhixin and Mr. Ma Jiantang were absent on business leaves. Presidents of the PBC Nanjing Branch, Wuhan Branch and Beijing Operations Office also joined the meeting as observers. Article source here